Search

Clarke Inc. to Realize $17 million Gain on Investment in Sobeys

TSX: CKI, CKI.DB; CKI.DB.A
HALIFAX, April 27 /CNW/ - Clarke Inc. ("Clarke") today announced that it
will realize a gain of approximately $17 million before income taxes on its
investment in Sobeys Inc. ("Sobeys"), if the proposed arrangement agreement
for Empire Company Ltd. ("Empire") to acquire all of the outstanding common
shares of Sobeys that it does not already own, is approved. Empire plans to
acquire the remaining common shares of Sobeys, including those held by Clarke
Inc., at a price of $58 per share.
"This $17 million gain, a 56% return on our investment, illustrates the
benefit of our investment strategy," said George Armoyan, President and CEO of
Clarke Inc. "Our experienced investment professionals are relentless in
seeking out investment opportunities that are undervalued by the market, but
which we believe may deliver strong returns when certain events occur. Our
investment in Sobeys is a perfect example of this strategy at work: we
researched this company, recognized its untapped potential to deliver value
for our shareholders, and took a significant position. That investment acumen
and discipline will now be rewarded, provided the agreement is approved, with
an impressive gain for our shareholders."
About Clarke
Clarke Inc. is the Halifax-based parent company of a number of
wholly-owned operating companies and divisions, and is an activist catalyst
investor with a diversified portfolio of strategic and opportunistic
investments. Clarke's operating companies are in the transportation services
business. From time to time, Clarke also participates in joint ventures when
they offer the opportunity to create shareholder value. Led by George Armoyan
and an entrepreneurial team of professionals focused on uncovering and
creating value, Clarke invests in undervalued businesses and participates
actively where necessary to enhance performance and increase returns. In 2006
alone, Clarke delivered a shareholder return on investment, including
dividends, of 33%. Clarke's securities trade on the Toronto Stock Exchange
(CKI, CKI.DB, CKI.DB.A); for more information about Clarke, please visit our
website at www.clarkeinc.com
Risks
Clarke's investment activity is influenced by timing and market
conditions, its ability to uncover hidden value and a variety of risks,
including market, investment and economic risks, and therefore there can be no
assurance that investment activities will result in continuing investment
gains.
Forward-Looking Statements
Certain statements in this news release may contain forward-looking
statements about future operations, financial results, objectives and
strategies of the Company. Forward-looking statements are typically identified
by the words "believe", "expect", "anticipate", "intend", "estimate", and
similar expressions. These statements are necessarily based on estimates and
assumptions that are inherently subject to risks and uncertainties, many of
which are beyond the Clarke's control.
Actual results may differ materially from expected results if known or
unknown risks affect the business, or if estimates or assumptions used in the
preparation of the consolidated financial statements and information and
analysis in this news release turn out to be inaccurate. As a result, there
can be no guarantee that any forward-looking statement will materialize.
Management disclaims any intention, and assumes no obligation, to update any
forward-looking statement, even if new information becomes available, as a
result of future events or for any other reason. Readers are urged to consider
these and other such factors carefully, and not place undue emphasis on the
Clarke's forward-looking statements.
%SEDAR: 00009934E